Oct 17, 2018
Asos shares bounce as profit and sales climb
Shares in Asos, the online fashion retailer, rose as much as 15 per cent in early trading after the company met its downgraded forecasts for full-year profits and made no changes to its medium-term guidance. Pre-tax profit for the year to August 31 was £102m, up from £80m last year. John Stevenson, an analyst at Peel Hunt, said the results were "Outstanding" and pointed out Asos absorbed many costs at the operating level that other companies would treat as exceptional. Asos is spending around £250m a year on new warehouses and systems that would support £4bn a year of sales and reiterated that it would see cash outflows as a result. "Asos should be investing as much as possible to drive sales growth and share in all the markets it operates," they said.
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